Technological catch-up in the biopharmaceutical sector: Evidence from Iran

Mehdi Majidpour, Ali Saber, Shaban Elahi, Ali Shayan and Seyed Mohammad Sahebkar Khorasani

Technology in Society, 2021, vol. 67, issue C

Abstract: This paper addresses the market and technological capabilities required for technological catch-up in the biopharmaceutical sector using a multi-case study method. The paper reveals that the firms that are catching up in biopharmaceuticals first developed their production capabilities (including API production, formulation and obtaining health approvals), then entered the process innovation. Iranian companies have locally re-produced existing products in the market in exact accordance with global standards, and then entered into the introduction of new strains by intensifying their R&D efforts. The paper observes that the existence of strong R&D efforts from the early stages is a prerequisite for technological growth. It also argues that assimilated migratory knowledge can not only complement indigenous efforts, but also stimulate further technological capability-building efforts by local firms. The paper shows that technological development in the Iranian biopharmaceutical industry was firstly geared towards the home market, which we refer to as the ‘test-bed’, before entering into international markets. A key strategic point here is that, despite the maximum use of domestic market capacity, our study considers it necessary to try to enter international markets. Therefore, presence in these markets and the development of capabilities in the biopharmaceutical industry are two blades of a pair of scissors.

Keywords: Biopharmaceuticals; Technological catch-up; R&D; Iran (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:teinso:v:67:y:2021:i:c:s0160791x21001706

DOI: 10.1016/j.techsoc.2021.101695

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